5 Advantages of Homeownership You May Not Be Aware Of

1. Saving Through Equity

There are more ways to get money out of your home than an eventual sale. As you build equity with each monthly payment, you’re essentially creating an increasingly large cash reserve. Equity can be used to secure financing for home improvements, college, debt consolidation, emergency expenses, and long-term investments.

2. Funding Retirement

Your home can be an even more effective retirement vehicle than a 401k. If you hold onto your property for decades, its value should increase substantially by the time you reach retirement age—according to Ownerly.com, homes appreciate an average of 3.8% nationally every year. Many retirees choose to sell their home and move to a smaller house and/or an area with a lower cost of living, using the profits to enjoy their golden years comfortably.

3. More Space for Your Money

Renters are not only paying for an asset that belongs to someone else but also likely to be paying more per square foot than homeowners, especially if rent increases every year. Every inch of space in your one-bedroom apartment gets more expensive as time goes by. Since houses are generally much bigger than apartments and monthly payments are more consistent, homeowners get more bang for their buck where space is concerned.

4. Civic Engagement

For the same reasons homeowners are more likely to bond with their neighbors, they’re also more inclined to get involved with their community. When you live in an area long-term, you have a vested interest in making it a desirable place to live. Many homeowners enjoy doing community service, joining organizations, and participating in local politics to improve conditions in their neighborhood.

5. Tax Benefits

Although tax regulations vary based on both your personal situation and the state where you live, nearly all homeowners are able to take advantage of some kind of tax benefit. Consult a tax advisor to see how you can best leverage your home expenses for a better return.

Homeownership is rewarding both personally and financially for a variety of reasons. When you get the keys to your new house, you’ll be opening doors in more ways than one.